Trump imposes 17% tariff on Mexican tomatoes amid failed negotiations
What's the story
US President Donald Trump has imposed a 17% tariff on fresh tomatoes imported from Mexico. The decision comes after trade negotiations between the two countries failed to reach an agreement. The new import tax is expected to impact food prices in the US, as Mexico currently supplies around 70% of the country's tomato market.
Industry protection
US government says tariff aims to protect domestic tomato industry
The US government has said that the new tariff is aimed at protecting the dwindling domestic tomato industry. Robert Guenther, executive vice president of the Florida Tomato Exchange, called it "an enormous victory for American tomato farmers and American agriculture." However, critics have warned that this import tax could lead to higher prices for tomatoes in the US market.
Consumer impact
Mexico says will seek to suspend tariff
In response to the US tariff, Mexico's Economic Secretary Marcelo Ebrard said they would continue to seek a way to suspend it. He added that this move would "only affect the pockets of American consumers." "The ground that Mexican fresh tomatoes has gained in the U.S. is because of the quality of the product, not from unfair practices," Ebrard said.
Regional impact
Analysts predict prices could increase by nearly 10%
Jacob Jensen, a trade policy analyst at the American Action Forum, predicted that regions heavily dependent on Mexican tomatoes could see price hikes of nearly 10%. This is because replacing this supply would be more difficult. Other parts of the US could see price increases closer to 6%. Lance Jungmeyer, president of the Fresh Produce Association of the Americas, said they are "saddened" that American consumers will have to pay a tomato tax for a reduced selection.
Agreement withdrawal
Deal aimed at preventing 'dumping' of tomatoes
The new tariff comes after the US withdrew from a trade deal with Mexico first signed in 2019. The deal was aimed at preventing Mexico from dumping tomatoes into the US at artificially low prices. However, periodic reviews always resulted in agreements that avoided duties until now. The Commerce Department said it had been "flooded with comments" from US tomato growers wanting better protection against Mexican goods.